Stadsnätsmagasinet: The uncaptured value of FTTH networks

29 September, 2011 - 13:00

Stadsnätsmagasinet: The uncaptured value of FTTH networks

ABSTRACT: Network evaluation is tricky but essential business for anyone considering network deployment. The network value for an operator consists of the potential accumulated revenue stream, typically in the form of monthly subscription from users.

It is common knowledge (and a matter of simple maths), that the deployment costs can hardly be covered by revenues at current subscription fees, and this  combined with the unwillingness of end users to pay more for more bandwidth  explains the still low penetration of FTTH in most markets. In this paper we argue that the value of an FTTH infrastructure goes well beyond the revenue stream from traditional services provided by operators today, but this is unaccounted for by the traditional business model based on a vertically integrated operator. We call this unaccounted part, the uncaptured values of FTTH, and we point out that these should be taken into account in order to define a sustainable business model.